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Canada · Insurance

Insurance in Canada — health, travel, and digital-nomad cover, what is mandatory, and how to choose a plan.

AI-drafted, editorially reviewed. Confirm specifics with the official authority.

Canada's federal social insurance is the Canada Pension Plan and Employment Insurance, both deducted from pay — CPP for pensions, EI for job-loss and parental benefits. Most private insurance is regulated provincially, while OSFI prudentially supervises federally-incorporated insurers. Auto insurance is mandatory in every province, and in some (such as BC and Saskatchewan) it is publicly provided rather than bought from a private insurer. Newcomers often add private health and dental cover, which public plans do not include.

In Canada, federal social insurance includes the Canada Pension Plan (CPP) and Employment Insurance (EI), with contributions deducted from pay. Most private insurance (auto, home, life) is regulated provincially, while federally-incorporated insurers are prudentially supervised by OSFI. Auto insurance is mandatory in every province (publicly run in some).

  • CPP and EI are federal contributory programmes deducted from pay (CPP for pensions; EI for job-loss/parental benefits).
  • Most private insurance is regulated by each province; OSFI prudentially supervises federally-incorporated insurers.
  • Auto insurance is mandatory in every province (publicly provided in some, e.g. BC, Saskatchewan).
  • Newcomers often add private health/dental and life insurance not covered by public plans.

  1. 1

    Know what CPP and EI each do

    CPP and EI are federal contributory programmes deducted from pay, with CPP covering pensions and EI covering job-loss and parental benefits. They serve different purposes despite arriving as one deduction line each.

  2. 2

    Check whether your province runs auto insurance

    Auto insurance is mandatory in every province, but in some it is publicly provided — British Columbia and Saskatchewan among them. That changes where you buy it, not just what it costs.

  3. 3

    Use the provincial regulator for private cover

    Most private insurance is regulated by each province. That is where consumer questions about auto, home and life cover belong, rather than with a federal body.

  4. 4

    Understand OSFI's narrower role

    OSFI prudentially supervises federally-incorporated insurers. It is about whether an insurer is financially sound, not about your individual policy dispute.

  5. 5

    Fill the health and dental gap

    Newcomers often add private health and dental insurance, plus life cover, for things public plans do not include. Identify the specific gaps rather than buying a broad policy blind.

  • CPP and EI deductions identified on payslip
  • Purpose of each programme understood
  • Province's auto-insurance model checked (public or private)
  • Mandatory auto cover arranged before driving
  • Provincial regulator identified for consumer questions
  • Health and dental gaps listed before buying cover
  • Cover reassessed after an interprovincial move

Frequently asked questions

What is the difference between CPP and EI?

Both are federal contributory programmes deducted from pay, but CPP is for pensions while EI covers job-loss and parental benefits. They appear as separate deduction lines and serve genuinely different purposes.

Do I buy car insurance from a private company in Canada?

It depends on your province. Auto insurance is mandatory everywhere, but in some provinces — British Columbia and Saskatchewan among them — it is publicly provided, so where you buy it differs rather than just the price.

Should newcomers to Canada buy private insurance?

Newcomers often add private health and dental cover, and life insurance, for things public plans do not include. The useful approach is to list the specific gaps first, then buy against them rather than buying broadly.

How to choose cover

Which cover you need is decided by your residence status and how long you are staying, not by price. Most people end up in one of three situations — and the wrong one is usually chosen by buying travel cover for what is actually a residence, or paying twice for cover the statutory scheme already provides.

Statutory or employer cover — if you live and work here

Once you register as a resident or start a local job, enrolment is usually mandatory and often automatic through payroll. This is the cheapest and broadest cover available to you, so check whether you qualify before buying anything private — see what is mandatory in this country above.

Private or top-up cover — to fill what the statutory scheme leaves out

Dental, vision, prescriptions, private rooms and shorter waiting times commonly sit outside the statutory scheme, and employers often provide a top-up policy. Read what your statutory cover excludes first — buying a full private policy when you only need a top-up is the most expensive mistake here.

International, travel or nomad cover — for short stays and the gap before enrolment

This is the right product in three cases: you are staying too briefly to become a resident, your visa requires proof of cover before arrival, or the statutory scheme has a waiting period after you arrive. It is a bridge, not a substitute — once you are enrolled locally, most people drop it.

Check before you pay

  • Does it satisfy the visa or residence requirement? If a permit asks for proof of cover, the policy must meet that authority's stated minimum — not merely exist.
  • Where does it cover you? Check whether your home country and any country you transit are included — many international policies exclude your country of citizenship or limit it to a few weeks a year.
  • How are pre-existing conditions handled? This is the most common claim refusal — look for the definition, the look-back period and whether a declaration is required.
  • Outpatient or hospital-only? Cheap policies often cover hospitalisation but not GP visits, tests or prescriptions — which is most of what you will actually use.
  • Direct billing or reimbursement? If the insurer does not pay the hospital directly, you need the cash up front and the paperwork afterwards.
  • Is the insurer licensed to operate here? The country's financial regulator — listed in the official authorities below — publishes the register. An unlicensed policy can be unenforceable locally.
  • What happens at renewal? Check age limits, whether premiums rise after a claim, and whether cover ends the day your visa status changes.

International providers people commonly use

Richbay is not an insurer or a broker and does not assess your circumstances. These are widely used international providers, listed for the third case above — check eligibility, the terms in the list above, and whether the provider is licensed where you are going.

  • SafetyWing

    Subscription travel-medical cover aimed at remote workers and long trips; monthly rolling rather than a fixed trip length.

  • Genki

    Monthly international health cover for nomads and expatriates, with a longer-term plan for people who stay abroad indefinitely.

  • Cigna Global

    Full international private medical insurance — modular, aimed at people relocating rather than travelling, and generally priced accordingly.

General information, not insurance advice. Cover, eligibility and legal requirements differ by country, visa type and personal circumstances — confirm with the authority and the insurer before relying on any of this.

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